Ginlong Technologies(SZ:300763) Huachuang Securities·2024-05-08 02:32Investment Rating - The report maintains a "Recommended" rating for the company, with an expected target price of 59.07 CNY based on a 25x PE for 2024 [2][5]. Core Views - The company's revenue for 2023 was 6.101 billion CNY, a year-on-year increase of 3.59%, while the net profit attributable to shareholders was 779 million CNY, a decrease of 26.47% [2]. - The first quarter of 2024 saw revenue of 1.397 billion CNY, a year-on-year decline of 15.56%, and a net profit of 20 million CNY, down 93.74% year-on-year [2]. - The report highlights that overseas inventory accumulation has led to a slowdown in revenue growth, with domestic competition causing price reductions [2][3]. - The company sold 746,700 inverters in 2023, a decrease of 20.76% year-on-year, but expects improved shipments in the second quarter of 2024 [2][3]. Financial Summary - For 2023, the total revenue was 6,101 million CNY, with a projected revenue of 8,157 million CNY for 2024, reflecting a growth rate of 33.7% [3]. - The net profit for 2023 was 779 million CNY, with forecasts of 947 million CNY for 2024, indicating a growth rate of 21.5% [3]. - The earnings per share (EPS) for 2023 was 1.95 CNY, expected to rise to 2.36 CNY in 2024 [3]. - The company’s price-to-earnings (PE) ratio is projected to decrease from 29 in 2023 to 24 in 2024 [3]. Market Outlook - The report anticipates a recovery in shipments in the second quarter of 2024 as overseas inventory issues are expected to resolve [2][3]. - The company is expected to effectively control its expense ratio, which increased to 22.6% in the first quarter of 2024 [2][3]. - The report suggests that as revenue grows, the expense ratio will decrease, improving overall profitability [2].